2 MCQ need quot CORRECT quot answer only


Suppliers of high-quality goods and services can overcome adverse selection problems through a variety of strategies such as warranties, attainment of educational credentials, or licensing. Such strategies are known as

a. incentive systems

b. reputational effects

c. anti-lemon strategies

d. market signaling strategies

e. inefficient credibility expenditures

1) Asymmetric information

An employer seeking to structure employee incentive systems in such a manner as to induce optimal work effort from employees whose actions cannot be perfectly observed must

a. Avoid situations that generate a “separating” equilibrium by making sure that incentive systems send the proper market signals to employees.

b. Structure incentive systems that satisfy a “participation” constraint and an “incentive compatibility” constraint.

c. Prevent moral hazard by educating all employees about the “incentive compatibility” features of their compensation plan.

d. Hire only workers whose marginal productivity is above average. e. Carefully check all employee credentials prior to hiring them.

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.